Free Security Guard Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of an armed and unarmed security guard service while showcasing the expected financials and operations over the next three years. Security Guard Service, Inc. (“the Company”) is a New York based corporation that will provide armed and unarmed guard services to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Company will operate two primary business segments: armed guard and unarmed guard services. Primarily, the Company will contract guards in an unarmed capacity for local retailers, warehouses, and other facilities that require moderate levels of security. The business will also provide armed guard services in instances where large amounts of valuable inventory need to be protected or a wealthy individual client requires an armed escort. The third section of the business plan will further describe the services offered by Security Guard Services, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Security Guard Service’s mission is to provide customers with an expansive line of armed and unarmed security services for the general public while concurrently remaining within the letter of the law regarding the rendering of these services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the security industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target businesses and wealthy individuals that require protection within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Security Guard Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Security Guard Service requires $125,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Security Guard Service, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Security Guard Service. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the services offered by Security Guard Service, Inc.
3.1 Unarmed Security Guards
The business will primarily offer unarmed guard security services, which Management anticipates will be used primarily among retailers and businesses that have security requirements, but do not need anything beyond a person that can act in a security guard capacity should the business need it. These guards will not carry a firearm, but they will be licensed and trained on how to handle security related matters. The revenue earned from this segment of the business will is substantially more than the Company’s armed guard division.
3.2 Armed Security Guards
The segment of the Company’s business is the most profitable aspect of the Company’s operations. The business will charge companies a significant premium over its unarmed services because of the increased degree of risk and liability that comes from having an armed personnel guard. These services are primarily used among financial businesses and companies that maintain expensive inventories. Security Guard Service’s primary customer base consists of non-financial businesses as well as warehousing and distribution companies that maintain several million dollars of saleable inventory. This is especially true among electronics, jewelry, and computer wholesalers and retailers. Additionally, the Company will ensure that each of its armed guards is properly trained to use a firearm and that they possess the proper state licensing to carry a weapon (either visibly or concealed) and that they are licensed in the State to act as an armed guard. The business will always comply with all federal, state, and local laws regarding the use of armed private security personnel and their handling of firearms. Each guard will be required to pass a background check and their firearm will be registered with the state.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the security guard industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, security companies tend to operate with a strong amount of economic stability as companies and VIPs will continue to require certain levels protection regardless of the general economic environment.
4.2 Industry Analysis
The private security and patrol industry has over 6,600 firms that operate in both an armed and unarmed capacity within the United States. Each year these businesses aggregately generate more than $9 billion dollars a year, and employ more than 476,000 people. Average annual payrolls for the private security industry have exceeded $6.2 billion dollars in each of the last five years. The growth of this industry has been remarkable over the last ten years, as more businesses are now in operation than ever before. During this time, the number of businesses that operate within this industry has increased more than 14%, while revenues from security contracts have increased more than 55%. This discrepancy in the increase of businesses versus the increase of receipts is primarily due to the increase in demand for these services. The market is still catching up with the demand for these services.
4.3 Customer Profile
As the business will operate among many different industries, it is difficult to determine the “average” client serviced by Security Guard Services, Inc. However, the Company expects that its clients will fall into several categories, including but not limited to: • Banks and financial companies • Construction Sites • Retail Stores • Homes of extremely wealthy clients (from time to time)
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Security Guard Service intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Establish relationships with other security companies within the targeted market.
• Develop relationships with the local chamber of commerce to develop relationships with business owners that have premises security needs
5.2 Marketing Strategies
The Company will market its security services to a broad spectrum of business clients within the target market area. These businesses include banks, retail stores (with large cash transporting needs), restaurants, jewelry businesses, and other companies that have security needs from time to time. Mr. Doe will continually integrate new marketing campaigns into Security Guard Service’s marketing plan to ensure that the Company can generate new clientele. The business will continue to directly contact the businesses in order to promote the Company’s services. Additionally, the business will maintain a number of advertisements in local business journals and publications. Finally, the Company will develop an online website that will showcase the services offered by Security Guard Service, Inc., its preliminary pricing information, licensure information, and how to contact the Company for its services.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Security Guard Service, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The business’s revenues are moderately sensitive to the overall economy. In the event of an economic recession the business may experience a decrease in the growth rate as people demand less guard services, but Management does not expect this recessed output to affect its ongoing contracts. Additionally, should revenues decrease, the Company’s low overhead and ability to decrease the number of guards on staff will allow the business to maintain profitability and a positive cash flow.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis